Asigning vs. double close

[Bryan O'Neal]

I'm just starting so I haven't come to this in my reading yet but I'd like to know the pros and cons to this subject. What situations make me lean to which solution? Thanks.

[Kathryn C.]

We have seen all of the methods here done and they all work. Depending on the buyer and how seasoned they are it may be harder to sell the LLC.

As mentioned above if you have a large profit margin a double close will probably prevent problems with the seller seeing you making a huge profit on the HUD (which we have seen kill deals).

Assignments can be hard to do with bank-owned deals and/or short-sales (the paperwork you sign may prohibit this).  Assignments are generally cheaper though than double closings.

If you can find an attorney/title company that will double close (if you have a local REIA join or at least get a monthly news letter and look for title companies/closing attorney's and call to see if they will do this as they are the ones most likely that will and the ones at our local REIA advertise they do double closings) there are a few things you can do to minimize your costs. Make sure you are not being charged twice foe the same title. If the end buyer is paying the closing costs then the fee they pay should cover your title exam on the first side of the transaction however you will want to get title insurance on your side of the closing. If you are paying for both closing then split the title exam fee on both HUDs. If there is an HOA fee make sure the end buyer is paying an HOA initiation fee and or HOA dues and it is not being paid twice.